Sysco Corp. (SYY) Lowered to “Neutral” at Credit Suisse Group AG
Sysco Corp. (NYSE:SYY) was downgraded by equities research analysts at Credit Suisse Group AG from an “outperform” rating to a “neutral” rating in a report issued on Wednesday.
SYY has been the subject of several other reports. Barclays PLC initiated coverage on shares of Sysco Corp. in a report on Friday, September 23rd. They set an “underweight” rating and a $48.00 price objective for the company. Argus raised their price objective on shares of Sysco Corp. from $56.00 to $60.00 and gave the stock a “buy” rating in a report on Friday, August 19th. Vetr raised shares of Sysco Corp. from a “sell” rating to a “hold” rating and set a $50.25 price objective for the company in a report on Monday, September 12th. Bank of America Corp. raised shares of Sysco Corp. from a “neutral” rating to a “buy” rating and set a $60.00 price objective for the company in a report on Tuesday, November 8th. Finally, Jefferies Group reissued a “hold” rating and set a $50.00 price objective on shares of Sysco Corp. in a report on Friday, September 30th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and four have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $52.09.
Sysco Corp. (NYSE:SYY) opened at 53.50 on Wednesday. Sysco Corp. has a 12-month low of $38.84 and a 12-month high of $54.66. The stock has a market capitalization of $29.26 billion, a PE ratio of 29.59 and a beta of 0.49. The company’s 50-day moving average is $48.97 and its 200 day moving average is $50.05.
Sysco Corp. (NYSE:SYY) last announced its quarterly earnings data on Monday, November 7th. The company reported $0.67 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.58 by $0.09. The company earned $14 billion during the quarter, compared to analyst estimates of $13.88 billion. Sysco Corp. had a net margin of 1.99% and a return on equity of 34.82%. The firm’s revenue for the quarter was up 11.2% compared to the same quarter last year. During the same period last year, the business earned $0.52 EPS. On average, analysts predict that Sysco Corp. will post $2.43 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, October 28th. Shareholders of record on Friday, October 7th were given a dividend of $0.31 per share. The ex-dividend date of this dividend was Wednesday, October 5th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 2.32%. Sysco Corp.’s dividend payout ratio (DPR) is 68.13%.
In related news, CEO William J. Delaney III sold 20,114 shares of the business’s stock in a transaction that occurred on Thursday, September 15th. The shares were sold at an average price of $49.51, for a total value of $995,844.14. Following the sale, the chief executive officer now directly owns 422,507 shares in the company, valued at approximately $20,918,321.57. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Greg D. Bertrand sold 16,500 shares of the business’s stock in a transaction that occurred on Monday, November 7th. The stock was sold at an average price of $50.79, for a total transaction of $838,035.00. Following the completion of the sale, the senior vice president now owns 57,491 shares in the company, valued at $2,919,967.89. The disclosure for this sale can be found here. Company insiders own 8.81% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in SYY. Springbok Capital Management LLC increased its stake in Sysco Corp. by 256.4% in the first quarter. Springbok Capital Management LLC now owns 5,203 shares of the company’s stock worth $243,000 after buying an additional 3,743 shares during the last quarter. LPL Financial LLC increased its stake in Sysco Corp. by 4.1% in the first quarter. LPL Financial LLC now owns 213,529 shares of the company’s stock worth $9,972,000 after buying an additional 8,350 shares during the last quarter. Panagora Asset Management Inc. increased its stake in Sysco Corp. by 1,297.1% in the first quarter. Panagora Asset Management Inc. now owns 821,152 shares of the company’s stock worth $38,372,000 after buying an additional 762,376 shares during the last quarter. Babson Capital Management LLC increased its stake in Sysco Corp. by 345.3% in the first quarter. Babson Capital Management LLC now owns 33,400 shares of the company’s stock worth $1,561,000 after buying an additional 25,900 shares during the last quarter. Finally, Arizona State Retirement System increased its stake in Sysco Corp. by 0.9% in the first quarter. Arizona State Retirement System now owns 240,659 shares of the company’s stock worth $11,246,000 after buying an additional 2,200 shares during the last quarter. Institutional investors and hedge funds own 76.77% of the company’s stock.
About Sysco Corp.
Sysco Corporation (Sysco) along with its subsidiaries and divisions, is a North American distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company provides products and related services to approximately 425,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
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